Gift now to benefit from special 2021 tax savings

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Generosity will never go out of style, but when it comes to taking advantage of the special charitable giving tax incentives Congress put on the table last year, time is of the essence. Dedicated to helping you conduct your giving in the best possible way, we’re here to walk you through the benefits of giving before 2021 is over.

The Taxpayer Certainty and Disaster Tax Relief Act of 2020, passed last December, extended several of the key tax benefits for donors provided by the Coronavirus Aid, Relief and Economic Security (CARES) Act of March 2020. These incentives are set to expire at the end of the year, but if you gift now, no matter the amount of your giving, you can still benefit from them. Here’s what you need to know.

  • For those who don’t itemize: When filing 2021 federal income tax returns, individuals who take the standard deduction instead of itemizing can claim a deduction of up to $300 for cash contributions made to qualifying charitable organizations, including public charities like the Quad Cities Community Foundation, though gifts to donor-advised funds are excluded. Taxpayers filing jointly can claim up to $600. Normally, no deduction is allowed.

  • For those who do itemize: Individuals who itemize instead of taking the standard deduction can deduct up to 100 percent of their adjusted gross income for cash contributions made to most charitable organizations in 2021. In this case, too, the exception does not apply to gifts to donor-advised funds; private foundations are also excluded. After these special provisions expire, the limit individuals can claim is expected to revert to 60 percent of their adjusted gross income. 

  • For corporate donors: Corporations can deduct up to 25 percent of taxable income for cash contributions to charitable organizations in 2021. That’s up from the typical maximum deduction of 10 percent.

The bottom line: Your gifts matter. For us at the Quad Cities Community Foundation, nothing was more important in supporting our community through the past 18 months than the generosity of donors across our community—and generosity is what will continue transforming the region in the future. That’s why we want to be sure you know that your gift today to the Quad Cities Community Impact Fund or fund of your choice comes with special tax advantages for the rest of 2021. To give today, click here.

Got questions? Anne Calder, vice president of development, is available to help you act on your generosity in the best way possible. Contact her at (563) 326-2840 or AnneCalder@QCCommunityFoundation.org. 

 

Eric McDowell